On November 13, the EUR/USDpair demonstrated recent bullish recovery around 1.1220-1.1250 where the current bullish movement above the depicted short-term bullish channel (In BLUE) was initiated.

Bullish fixation above 1.1430 was needed to enhance further bullish movement towards 1.1520. However, the market has been demonstrating obvious bearish rejection around 1.1430 few times so far.

The EUR/USD pair has lost its bullish momentum since January 31 when a bearish engulfing candlestick was demonstrated around 1.1514 where another descending high was established then.

This allowed the current bearish movement to occur towards 1.1300-1.1270 where the lower limit of the depicted DAILY channel came to meet the pair.

Last week, significant bullish recovery has emerged on Tuesday. However, By the end of last week's consolidations on Thursday, the pair has failed to fixate above 1.1400 with early signs of bearish rejection.

This allowed the current bearish movement to occur towards 1.1175. Moreover, a bearish flag pattern remains valid if the current bearish persistence below 1.1250 is maintained on daily basis. Pattern target is projected towards 1.1000.

On February 15, significant bullish recovery was demonstrated around 1.2800-1.2820 resulting in the recent bullish swing. Quick bullish movement was demonstrated towards 1.3155, 1.3240 and 1.3300.

Early signs of bearish reversal/retracement were demonstrated around the price level of 1.3317. Bearish pullback was expected to extend down towards 1.3150 which failed to offer enough bullish support.

That's why, further bearish decline took place towards the price levels of 1.3050-1.3000 where the depicted demand-zone is currently located.

On the other hand, any bearish breakdown below 1.3020 invalidates the short-term bullish scenario allowing a quick bearish movement to occur towards 1.2950-1.2920 where the next prominent demand zone is located.

Trade Recommendations:

Conservative traders can consider the current bearish pullback around 1.3050 as a valid BUY entry. S/L to be located below 1.3000. T/P levels to be located around 1.3140 and 1.3240 initially.

The U.S. dollar slipped against its major counterparts in the European session on Friday, after a data showed that the economy created much fewer jobs than forecast in February, supporting hopes for a Fed rate hike pause in coming months.

Data from the Labor Department showed that employment in the U.S. showed only a slight increase in the month of February.

The Labor Department said non-farm payroll employment edged up by 20,000 jobs in February after jumping by an upwardly revised 311,000 jobs in January.

Economists had expected employment to increase by about 180,000 jobs compared to the spike of 304,000 jobs originally reported for the previous month.

Despite the much weaker than expected job growth, the unemployment rate dropped to 3.8 percent in February from 4.0 percent in January. The unemployment rate had been expected to dip to 3.9 percent.

The greenback dropped against its most major counterparts in the Asian session following the release of weak Chinese data for February.

The greenback declined to an 8-day low of 110.77 against the yen, from a high of 111.65 hit at 6:45 pm ET. If the greenback falls further, 109.00 is likely seen as its next support level.

Data from the Cabinet Office showed that Japan's gross domestic product gained a seasonally adjusted 0.5 percent on quarter in the fourth quarter of 2018.

That beat expectations for an increase of 0.4 percent following the 0.3 percent gain in the previous reading.

The greenback reversed from an early high of 1.0118 against the Swiss franc, falling to 1.0071. The greenback is seen finding support around the 0.99 level.

The greenback, having advanced to an 11-day high of 1.3052 against the pound at 7:30 am ET, reversed direction and dropped slightly to 1.3090. The next key support for the greenback is seen around the 1.32 level.

Following an advance to 1.1185 against the euro at 8:45 pm ET, the greenback reversed direction with the pair trading at 1.1241. The next possible support for the greenback is seen around the 1.15 region.

Preliminary data from the Federal Statistical Office showed that German factory orders sharply dropped in January at the fastest pace in seven months, defying expectations for further gains, mainly due to a slump in external demand.

The greenback fell to a 3-day low of 0.6809 against the kiwi and a 2-day low of 1.3390 against the loonie, off its early highs of 0.6749 and 1.3466, respectively. The greenback is poised to challenge support around 0.70 against the kiwi and 1.32 against the loonie.

The greenback depreciated to 0.7051 against the aussie, after rising to a 2-month high of 0.7003 at 12:30 am ET. On the downside, 0.72 is possibly seen as the next support level for the greenback.

After reporting a steep drop in new residential construction in the U.S. in the previous month, the Commerce Department released a report on Friday showing housing starts rebounded by much more than anticipated in the month of January.

The report said housing starts soared by 18.6 percent to an annual rate of 1.230 million in January after plunging by 14.0 percent to a revised rate of 1.037 million in December.

Economists had expected housing starts to jump by 11 percent to a rate of 1.197 million from the 1.078 million originally reported for the previous month.

Single-family housing stars surged up by 25.1 percent to a rate of 926,000 in January, while multi-family starts climbed by 2.4 percent to a rate of 304,000.

The Commerce Department said building permits also rose by 1.4 percent to an annual rate of 1.345 million in January after inching up by 0.3 percent to 1.326 million in December.

Building permits, an indicator of future housing demand, had been expected to drop by 2.8 percent to a rate of 1.289 million.

A 7.2 percent jump in multi-family permits to a rate of 533,000 more than offset a 2.1 percent drop in single family permits to a rate of 812,000.

Italy's industrial production declined for a third straight month in January, but at a slower pace, figures from the statistical office ISTAT showed on Friday.

Industrial production fell 0.8 percent year-on-year in January, less than 5.5 percent decline in December. Economists had expected a 3.0 percent fall in production.

In November, production dropped 2.6 percent.

The latest decline was the weakest since August, when output dropped at the same pace.

The biggest increase was in energy by 11.7 percent, while production of the intermediate goods, consumer goods and capital goods declined by 3.3 percent, 2.7 percent and 1.7 percent, respectively, in January.

On a month-on-month basis, industrial production rose 1.7 percent in January after a 0.7 percent fall in December and a 1.7 percent slump in November.

Employment in the U.S. showed only a slight increase in the month of February, according to a report released by the Labor Department on Friday.

The Labor Department said non-farm payroll employment edged up by 20,000 jobs in February after jumping by an upwardly revised 311,000 jobs in January.

Economists had expected employment to increase by about 180,000 jobs compared to the spike of 304,000 jobs originally reported for the previous month.

The much weaker than expected job growth in February represented the worst month since the loss of 18,000 jobs in September of 2017, when employment was impacted by Hurricanes Harvey and Irma.

The uptick in employment came as continued increases in professional and business services, healthcare, and wholesale trade jobs were partly offset by the loss of construction, retail and government jobs.

"The sharp slowdown in payroll employment growth in February provides further evidence that economic growth has slowed in the first quarter," said Michael Pearce, Senior U.S. Economist at Capital Economics. "That adds weight to our view that the Fed will not be raising interest rates this year."

Despite the much weaker than expected job growth, the unemployment rate dropped to 3.8 percent in February from 4.0 percent in January. The unemployment rate had been expected to dip to 3.9 percent.

The decrease in the unemployment rate came as the labor force shrank by 45,000 people, while the household measure of employment increased by 255,000.

The much weaker than expected job growth also did not stop the annual rate of growth in average hourly employee earnings from accelerating to 3.4 percent in February from 3.1 percent in January.

"With productivity growth also picking up in recent quarters, however, that won't be enough to generate a pick-up in inflation," Pearce said.

He added, "That frees up the Fed to focus on the incoming data on economic activity, which increasingly reinforce officials' patient stance."

German factory orders unexpectedly dropped sharply in January at the fastest pace in seven months, mainly due to a slump in external demand, suggesting that the biggest euro area economy is not out of the woods yet.